Tangibility


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Tangibility

Characteristic that an assets can be used as collateral to secure debt.

Tangibility

In law, the ability to be apprehended by the human senses. Many assets have tangibility, including but not limited to, cash, commodities, real estate, and personal property. Some more abstract things also have tangibility, at least in certain circumstances. For example, accounts receivable is a tangible asset for accounting purposes. Tangibility explicitly does not include patents, brands, or intellectual property. An asset must have tangibility in order to be used as collateral on a loan. For example, one may not use a patent as collateral, but may use his/her house. See also: Intangibility, Tangible net worth.
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The highest negative gap was found in tangibility dimension as reported by Al Fraihi and Latif, (10) and Zarei et al.
BANK_DEBT/TOTAL_DEBT = f(MLSV, EXCESS)_CONTROL, TANGIBILITY, PROFITABILITY, TOBIN_Q, Z_SCORE, LEVERAGE, SIZE, Industry dummies, Year dummies), (3)
In the survey, they identified the size, profitability, tangibility and the growth opportunity as determinants of capital structure of those companies.
In both cases, the coefficients were controlled in terms of sizing, tangibility, and growth, as they are traditional determinants of capital structure (Titman & Wessels, 1988).
Trade-off and agency theories predicate, and the majority of empirical studies indicate, that leverage is positively correlated with firm tangibility (e.
Results for the tangibility variable reveal that, on average, there is a higher level of this kind of assets in firms with low growth opportunities.
expansionary or contractionary) due to their individual characteristics like size, tangibility, and leverage.
This scale has 22 items divided into five dimensions: tangibility, reliability, responsiveness, assurance and empathy.
This can be interpreted as the manifestation of the maturation process which leads the Polish economy to become more conforming to the economies of developed countries for which the aforementioned positive of tangibility has on leverage is typical, which was confirmed in many empirical studies.
1 Resource Tangibility and Foreign Firms' Political Strategies in Emerging Economies
Thus, empirically, scholars sought to explain the companies' funding structure primarily through their characteristics, such as size, profitability, tangibility, growth opportunities, risk, among others.